What is the significance/importance of the reactor?

One of the major stumbling blocks in the commercialization of micro-algae to biofuels (or bio-energy) is the maximization of carbon utilization that is contained within the algae biomass. Direct liquefaction has the potential to offer very high carbon utilization efficiencies (>60%), which is very difficult to achieve in other ways. Furthermore, nutrients, which is a significant portion of the operating costs for micro-algae cultivation, can be recovered and recycled to the algae cultivation process, thereby reducing these input costs drastically. In the case of micro-algae to biodiesel production, for example, the business is dependent upon selling the remaining biomass (hence the nutrients contained in them) as low value by-products (e.g. animal feeds). Thus, the ability to directly liquefy the biomass allows maximum value extraction, while at the same time allows reduction of algae cultivation costs by recycling nutrients.